FAQ

Frequently Asked Questions

Q: Is my deposit refundable if I change my mind after the sale and decide not to buy the property?

A: No. Once your bid has been accepted, both parties will enter into a written contract..

Q: Can anyone attend an Auction House Co. real estate auction?

A: Yes! All auctions are open to the public.

Q: I’ve never attended a real estate auction; how does the process work?

A: Buying real estate at auction is a very simple process. However, it is important for you to be informed and prepared prior to auction day. You should inspect the property prior to bidding on the property during one of the scheduled preview dates.

Q: What are the advantages of buying real estate at auction?

A: Buying real estate at auction allows you to experience a quick purchase and closing, eliminates lengthy negotiations, and provides the assurance the price paid was market value.

Q: Why are properties sold at auction?

A: Owners make a business decision to sell property in a one-day sale rather than continuing to incur carrying costs. Sellers are motivated to sell and offer you an opportunity to purchase desirable property at the best price.

Q: How do I inspect the property?

A: Many of the properties will be open for inspection on the dates and times listed. However, some properties will be shown by appointment only. Please contact the Auction House Co if you are unable to make the open house. We are available to answer property-specific questions and open house viewing questions.

Q: Are there any back taxes or liens against the property?

A: There are no back taxes or liens against the properties. Each property will be conveyed by special warranty deed, and title insurance is provided by the Seller.

Q: Can I use a broker?

A: Any real estate broker or agent may represent you at the auction. However, you are not required to have a broker in order to bid at the auction.

Q: What do I need to do to register for the real estate auction?

A: Registration is free and can be done at the registration table on auction day. You MUST register with a valid ID (Driver’s License) on auction day and receive a Bidder Card in order to bid. If you are the highest bidder for a property you will be required to make an earnest money deposit on auction day.

Q: How are auctions conducted?

A: Most real estate auctions are conducted with open bidding. When you are ready to bid hold up your bidder card and call out your bid, or tell one of the Auction House Co bid assistants the amount you want to bid. See Buying at Auction for more details.

Q: What is the minimum bid?

A: The audience begins the bidding so there are no set minimum bids. The final sale price for each property is subject to approval by the seller. The sellers will be present at the auction to make an immediate decision. Unless the properties are offered “absolute”, the seller reserves the right to accept, reject or counter the final bid!

Q: Do I have to make a down payment at the auction?

A: You are required to put a percentage of your contract price down on each property that you purchase on sale day. That money will be a down payment and held as escrow in the title co name. In most cases a Buyers premium will also apply. Please see the information and terms sheet for each property to view the amounts. Both escrow and Buyers premium will be due the day of the sale in form of cash or check.

Q: Is the amount I bid the total price I will pay?

A: A Buyer’s Premium will be added to your bid. The premium is a percentage amount paid by the buyer and added to the highest successful bid to determine the final contract price.

Q: Can I buy more than one property?

A: Yes. You just need to bring and present a separate cashier’s check for each property you intend to purchase.

Q: To whom do I talk to if I don’t understand the auction contract?

A: It is very important for auction buyers to be educated and informed regarding the real estate auction process. Make sure all your questions and concerns are answered before you attend an auction.

Q: What do the terms “reserve” and “absolute” mean?

A: An auction where the property is being sold with a “reserve” means that the property is being sold subject to seller approval. When a property is being sold “absolute” it will be sold to the highest bidder regardless of price. Any absolute properties will be noted.

Q: What happens once I have become the successful high bidder?

A: You will move to the contract table where you will present your check and complete the Purchase and Sale Agreements. Agreement examples are available the day of the auction.

Q: When and where are closings held?

A: Closings typically are 30 – 45 days from the seller’s acceptance. Closing rates are split 50-50 between the buyer and seller. Typically our closings are held at Pontoon Title Co. although other arrangements can be made.

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Please Contact

Bill Scaturro
(618) 344-3545
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